Lapid plans to cut VAT break for holiday-makers on vacation in Israel, a benefit in Israel that not all Western countries offer.

Spreading the burden apparently applies to tourists, too: Finance Minister Yair Lapid intends to cancel the VAT exemption currently in place for tourists. The move is likely to bring another NIS 300 million to NIS 500 million into state coffers annually.

It would be a real shame if VAT were to be applied to the hotel stays of
overseas guests - hotels in Israel are already regarded as very
expensive and this is one of very few tangible incentives available to
overseas visitors to Israel. If it really is impossible to continue
this incentive, maybe the government could introduce a reduced rate of
VAT - say 5% - and apply this to ALL stays - Israelis and foreigners alike?

If the Israeli leaders would drop their collective paranoia perhaps they
would then be able to cut defense spending. But gee whiz! Why cut
defense spending while Uncle Sap keeps underwriting the costs?

Everything stated before is true especially concerning the economic
impact. as someone who visits Israel 6 times a year i can tell you that
a VAT imposition on my visits will make me consider other places to
visit or not visit at all. With all the brilliant people in Israel they
have an idiot running finance. What a shame.

Lapid is again showing the fact he is an ammeter, many tourists make
spur of the moment buys because they see that sticker saying VAT back
and they mentally think they are getting a great deal and spend on
something they may not have bought otherwise. Raising hotel prices and
expenses are going to drive people away. When people are deciding if
they should go to Israel or some other country for their vacation is
hotel prices. You make prices to high people will not come and that
means not a saving of 300 million shekels but a loss of thousands of
millions and loss of jobs. This is a finance minister whose budget will
hurt the country but considering we won't really start to feel anything
till after the election its doubtful Lapid will pay the price for his
economic stupidity on election day and he will still b the smooth talker
boasting about things like his hatred of haredii rather that a
politician trying to defend his policies on issues that really matter
like economics.

The hotel prices are already very high compared to Western Countries. On
the one hand we are fighting to lower price of plane tickets for
Israelis and also to attract tourists. On the other hand we are going to
make a trip to Israel more expensive even with Open Skies! It does not
make sense. Mr. Lapid which Economic Faculty did you study. Oh no I
forgot you do not have a Bagrut yet!!!

I don't know if Lapid realize the cost to stay in a 3 star hotel in
either Tel Aviv, Jerusalem or the Dead Sea ($180-250 per night). Israel
is already very expensive. 5 star hotels such as the King David or
Citadel Hotels in Jerusalem (min 500 to 700 per night). If you apply the
vat to tourists, you will lose more tourists and Israel will gain nothing.

If the cost of tourism in Israel rises, fewer tourists will come here.
The economy will lose jobs, and the tax revenue those jobs generate.
If the costs of fresh produce rises, people will consume less of it.
What will they replace it with? Cheaper processed foods comprised of
sugars and refined starches. And what will that do? In the long term it
will create more Israelis with metabolic syndrome, diabetes, heart
disease etc, which will cost the economy in days of labor, and in the
price of treating those diseases. If he wants to tax something he should
raise taxes on products containing sugar, refined flours and grains,
corn syrup. He could also raise taxes on electricity and gasoline and
make people pay for their trash collection by weight.

not necessarily soon.. remember if the price of a product you REALLY
want or NEED (like gas or the Holy Land) then you are more willing to
accept higher prices. Is there a substitute for gas? well, not really?
is there a substitute for bread? No. Can Christians and Jews go to
another Holy Land? Definitely not.

Tourism is one of the most profitable industries with very low
environmental footprint. Is it really a good idea to raise the cost of
Israel to tourists and possibly keep them from choosing you instead of a
less expensive country?

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